The expeditious modernisation of football has led to α fast growth of the financial revenues and profitability in sports organisations throughout the world.
The role of football clubs is multidimensional due to the numerous functional parts to cope with such as financial management, talent identification, budget management, players’ and managers’ wages, and fans’ loyalty. Subsequently, football has shown dramatic progress in the last decades by being transformed from a traditional and folk sport to a commercial and worldwide enterprise.
UEFA Champions League is a notable example of this economic transformation. UEFA.com displays such speedy and rapid increase on the aggregate revenues that top European football clubs earn from Champions League which is by far the most remunerative competition in Europe.
Specifically, the image below illustrates the total amount of revenues that all football clubs acquired from UEFA Champions League during the year 2006-2007 and they are approximately 579,600,600€ million. Meanwhile, Appendix B reveals that there has been a steady rise in the number of aggregate revenues in the year 2016-2017 where football clubs gain 1,396,125.000€ million. Therefore, it is clear that from the period 2006-2007 until 2016-2017 the entire amount of revenues for football clubs have been almost tripled.
Additionally, the revenues for UEFA Champions League have also been increased gradually in the last decade. Statista.com reports the total revenues that this competition gained in the last decade, especially by broadcasting and commercial rights.
UEFA Champions League total revenues from 2005/06 to 2016/17 season
UEFA Champions League: rights revenues by segment from 2003/04 to 2016/17
Apparently, UEFA Champions League is a very lucrative competition and thus most of the football clubs aim to participate in the group stages in order to enhance their financial prosperity. In today’s vigorous and challenging business football, Champions League seems an outstanding opportunity for football clubs to acquire noteworthy revenues via various groups such as sponsors, social media or marketing support.
From the financial perspective, football can be considered as a capital market where football clubs operate as businesses with the view of extremely peaking their revenues, values and profitability through the Champions League. This competition plays a key role in the capitalisation of football as well as in the development of clubs’ financial welfare.